SECTION 1. Chapter 329, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:

"Part . Personal use of marijuana

§329-A Definitions.
As used in this part, unless the context otherwise requires:

"Consumer"
means a person twenty-one years of age or older who purchases marijuana or
marijuana products for personal use by persons twenty-one years of age or
older, but not for resale to others.

"Marijuana
accessories" means any equipment, products, or materials of any kind that
are used, intended for use, or designed for use in planting, propagating,
cultivating, growing, harvesting, composting, manufacturing, compounding,
converting, producing, processing, preparing, testing, analyzing, packaging,
repackaging, storing, vaporizing, or containing marijuana, or for ingesting,
inhaling, or otherwise introducing marijuana into the human body.

"Marijuana
cultivation facility" means an entity licensed to cultivate, prepare, and
package marijuana and sell marijuana to retail marijuana stores, to marijuana product
manufacturing facilities, and to other marijuana cultivation facilities, but
not to consumers.

"Marijuana
product manufacturing facility" means an entity licensed to purchase
marijuana; manufacture, prepare, and package marijuana products; and sell
marijuana and marijuana products to other marijuana product manufacturing
facilities and to retail marijuana stores, but not to consumers.

"Marijuana
products" means concentrated marijuana products and marijuana products
that are comprised of marijuana and other ingredients and are intended for use
or consumption, including edible products, ointments, and tinctures.

"Marijuana
testing facility" means an entity licensed to analyze and certify the
safety and potency of marijuana.

"Retail
marijuana store" means an entity licensed to purchase marijuana from
marijuana cultivation facilities and marijuana and marijuana products from
marijuana product manufacturing facilities and to sell marijuana and marijuana
products to consumers.

§329-B Personal
use of marijuana lawful. Notwithstanding any other provision of law, the
following acts shall be lawful and shall not be a basis for seizure or
forfeiture of assets for persons twenty-one years of age or older:

(1) Possessing, using, displaying, purchasing, or
transporting marijuana accessories or one ounce or less of marijuana;

(2) Possessing, growing, processing, or transporting
no more than marijuana plants, with
or fewer being mature, flowering
plants, and possession of the marijuana produced by the plants on the premises
where the plants were grown, provided that the growing takes place in an
enclosed, locked space, is not conducted openly or publicly, and is not made
available for sale;

(3) Transfer of one ounce or less of marijuana
without remuneration to a person who is twenty-one years of age or older;

(4) Consumption of marijuana, provided that nothing
in this section shall permit consumption that is conducted openly and publicly
or in a manner that endangers others; and

(5) Assisting another person who is twenty-one years
of age or older in committing any of the acts described in this section.

§329-C Lawful
operation of marijuana establishments. Notwithstanding any other provision
of law, the following acts shall be lawful and shall not be a basis for seizure
or forfeiture of assets for persons twenty-one years of age or older:

(1) Manufacture, possession, or purchase of marijuana
accessories or the sale of marijuana accessories to a person who is twenty-one
years of age or older;

(2) Possessing, displaying, or transporting marijuana
or marijuana products; purchase of marijuana from a marijuana cultivation
facility; purchase of marijuana or marijuana products from a marijuana product
manufacturing facility; or sale of marijuana or marijuana products to
consumers, if the person conducting the activities described in this paragraph
has obtained a current, valid license to operate a retail marijuana store or is
acting in the person's capacity as an owner, employee, or agent of a licensed
retail marijuana store;

(3) Cultivating, harvesting, processing, packaging,
transporting, displaying, or possessing marijuana; delivery or transfer of
marijuana to a marijuana testing facility; selling marijuana to a marijuana
cultivation facility, a marijuana product manufacturing facility, or a retail
marijuana store; or the purchase of marijuana from a marijuana cultivation
facility, if the person conducting the activities described in this paragraph
has obtained a current, valid license to operate a marijuana cultivation
facility or is acting in the person's capacity as an owner, employee, or agent
of a licensed marijuana cultivation facility;

(4) Packaging, processing, transporting,
manufacturing, displaying, or possessing marijuana or marijuana products;
delivery or transfer of marijuana or marijuana products to a marijuana testing
facility; selling marijuana or marijuana products to a retail marijuana store
or a marijuana product manufacturing facility; the purchase of marijuana from a
marijuana cultivation facility; or the purchase of marijuana or marijuana
products from a marijuana product manufacturing facility, if the person
conducting the activities described in this paragraph has obtained a current,
valid license to operate a marijuana product manufacturing facility or is
acting in the person's capacity as an owner, employee, or agent of a licensed
marijuana product manufacturing facility;

(5) Possessing, cultivating, processing, repackaging,
storing, transporting, displaying, transferring, or delivering marijuana or
marijuana products if the person has obtained a current, valid license to
operate a marijuana testing facility or is acting in the person's capacity as
an owner, employee, or agent of a licensed marijuana testing facility; and

(6) Leasing or otherwise allowing the use of property
owned, occupied, or controlled by any person, corporation, or other entity for
any of the activities conducted lawfully in accordance with this section.

(1) Procedures for the issuance, renewal, suspension,
and revocation of a license to operate a marijuana establishment;

(2) A schedule of application, licensing, and renewal
fees; provided that the application fee shall not exceed
$ , with this upper limit
adjusted annually for inflation based on the consumer price index for urban
Honolulu issued by the United States Bureau of Labor Statistics, unless the
department determines a greater fee is necessary to carry out the department's responsibilities
under this part;

(3) Qualifications for licensure that are directly
and demonstrably related to the operation of a marijuana establishment,
including licensure as a business under chapter 237;

(4) Security requirements for marijuana
establishments;

(5) Requirements to prevent the sale or diversion of
marijuana and marijuana products to persons under the age of twenty-one;

(6) Labeling requirements for marijuana and marijuana
products sold or distributed by a marijuana establishment;

(7) Health and safety standards for the manufacture
of marijuana products and the cultivation of marijuana;

(8) Restrictions on the advertising and display of
marijuana and marijuana products; and

(9) Civil penalties for the failure to comply with any
rule adopted pursuant to this section.

(b) For the
purpose of ensuring that individual privacy is protected, the department shall
not require a consumer to provide a retail marijuana store with personal
information other than government-issued identification to determine the
consumer's age, and a retail marijuana store shall not be required to acquire
and record personal information about consumers other than information
typically acquired in a financial transaction conducted at a retail liquor
store.

§329-E County
ordinances. (a) Not later than
, each county
shall enact an ordinance specifying the entity within the county that shall be
responsible for processing applications submitted for a license to operate a
marijuana establishment within the county and for the issuance of those licenses
if the issuance by the county becomes necessary because of a failure by the
department to adopt rules pursuant to section 329-D or because of a failure by
the department to process and issue licenses as required by section 329-F(a).

(b) A county
may enact ordinances, not in conflict with this part or with rules adopted
pursuant to this part:

(1) Governing the time, place, manner, and number of
marijuana establishment operations;

(2) Establishing procedures for the issuance,
suspension, and revocation of a license issued by the county in accordance with
section 329-F(b) or 329-F(c);

(3) Establishing a schedule of annual operating,
licensing, and application fees for marijuana establishments; provided that the
application fee shall only be due if an application is submitted to a county in
accordance with section 329-F(c) and a licensing fee shall only be due if a
license is issued by a county in accordance with section 329-F(b) or 329-F(c);

(4) Establishing civil penalties for violation of an
ordinance governing the time, place, and manner of a marijuana establishment
that may operate in the county; or

§329-F Marijuana
establishments; licenses; procedures.
(a) Each application for an annual license to operate a marijuana
establishment shall be submitted to the department. The department shall:

(1) Begin accepting and processing applications no
later than ;

(2) Immediately forward a copy of each application
and half of the license application fee to the county in which the applicant
desires to operate the marijuana establishment;

(3) Issue an annual license to the applicant between
forty-five and ninety days after receipt of an application unless the
department finds the applicant is not in compliance with rules adopted pursuant
to section 329-D or the department is notified by the relevant county that the
applicant is not in compliance with ordinances enacted pursuant to section
329-E(b) and in effect at the time of application; provided that where a county
has enacted a numerical limit on the number of marijuana establishments and a
greater number of applicants seek licenses, the department shall solicit and
consider input from the county as to the county's preference or preferences for
licensure; and

(4) Upon denial of an application, notify the
applicant in writing of the specific reason for its denial.

(b) If the
department does not issue a license to an applicant within ninety days of
receipt of the application filed in accordance with subsection (a) and does not
notify the applicant of the specific reason for its denial, in writing and
within the ninety-day time period, or if the department has adopted rules
pursuant to section 329-D and has accepted applications pursuant to subsection
(a) but has not issued any licenses by ,
the applicant may resubmit the application directly to the county, pursuant to section
329-E(a), and the county may issue an annual license to the applicant. A county
issuing a license to an applicant shall do so within ninety days of receipt of
the resubmitted application unless the county finds and notifies the applicant
that the applicant is not in compliance with ordinances enacted pursuant to section
329-E(b) in effect at the time the application is resubmitted and the county
shall notify the department if an annual license has been issued to the
applicant. If an application is submitted to a county under this subsection,
the department shall forward to the county the application fee paid by the
applicant to the department upon request by the county. A license issued by a county
in accordance with this subsection shall have the same force and effect as a
license issued by the department in accordance with subsection (a) and the
holder of such license shall not be subject to regulation or enforcement by the
department during the term of that license. A subsequent or renewed license
may be issued under this subsection on an annual basis only upon resubmission
to the county of a new application submitted to the department pursuant to subsection
(a).

(c) If the
department does not adopt rules required by section 329-D, an applicant may
submit an application directly to a county after
and the county
may issue an annual license to the applicant. A county issuing a license to an
applicant shall do so within ninety days of receipt of the application unless
it finds and notifies the applicant that the applicant is not in compliance
with ordinances enacted pursuant to section 329-E(b) in effect at the time of
application and shall notify the department if an annual license has been
issued to the applicant. A license issued by a county in accordance with this subsection
shall have the same force and effect as a license issued by the department in
accordance with subsection (a) and the holder of the license shall not be
subject to regulation or enforcement by the department during the term of that
license. A subsequent or renewed license may be issued under this subsection
on an annual basis if the department has not adopted rules pursuant to section
329-D at least ninety days prior to the date upon which the subsequent or
renewed license would be effective or if the department has adopted rules
pursuant to section 329-D but has not, at least ninety days after the adoption
of the rules, issued licenses pursuant to subsection (a).

§329-G Employers;
driving; minors; control of real property. Nothing in this part shall be construed to:

(1) Require an employer to permit or accommodate the
use, consumption, possession, transfer, display, transportation, sale, or
growing of marijuana in the workplace or to affect the ability of employers to
have policies restricting the use of marijuana by employees;

(2) Allow driving under the influence of marijuana or
driving while impaired by marijuana or to supersede any law relating to driving
under the influence of marijuana or driving while impaired by marijuana, nor
shall this part preclude the State from enacting laws and imposing penalties
for driving under the influence of or while impaired by marijuana;

(3) Permit the transfer of marijuana, with or without
remuneration, to a person under the age of twenty-one or to allow a person
under the age of twenty-one to purchase, possess, use, transport, grow, or
consume marijuana; or

(4) Prohibit a person, employer, school, hospital,
detention facility, corporation, or any other entity who occupies, owns, or
controls real property from prohibiting or otherwise regulating the possession,
consumption, use, display, transfer, distribution, sale, transportation, or
growing of marijuana on or in that property.

§329-H Medical
use of marijuana unaffected. Nothing
in this part shall be construed as in any manner affecting the provisions of
part IX relating to the medical use of marijuana."

"(2) It is an affirmative defense to
prosecution for any marijuana-related offense defined in this part that the
person who possessed or distributed the marijuana was authorized to possess or
distribute the marijuana for medical purposes pursuant to part IX of chapter
329[.] or acted in accordance with part of that
chapter."

SECTION 3. In codifying the new sections added by section 1
of this Act, the revisor of statutes shall substitute appropriate section
numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act does not affect rights and duties that
matured, penalties that were incurred, and proceedings that were begun before
its effective date.

SECTION 5. Statutory material to be repealed
is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act
shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Personal Use of Marijuana; Licenses to Cultivate,
Manufacture, Test, or Sell Marijuana; County Regulation

Description:

Authorizes persons 21 years of age or older to consume or
possess limited amounts of marijuana for personal use. Provides for the
licensing of marijuana cultivation facilities, product manufacturing
facilities, safety testing facilities, and retail stores. Requires the
counties to provide for licensing of marijuana facilities if the State fails to
do so. Authorizes the counties to regulate or prohibit marijuana facilities
within their boundaries.

The
summary description of legislation appearing on this page is for informational
purposes only and is not legislation or evidence of legislative intent.